When is the $10,000 transfer fee due for a Spray Net franchise?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Business Management Software | Then-current software fee charged by us or other provider we designate Currently, $350/month, plus 0.25% of Gross Sales generated by the Franchised Business | Monthly based, in part, on the Gross Sales generated in the prior calendar month. Currently collected via GoCardless. | This amount is paid to our Approved Supplier (currently, us) for the Business management and project/sales tracking software that we have developed and branded for use in connection with the System (the "Business Management Software"). |
| Renewal Fee | $10,000 | At the time of your renewal request. | You must meet certain criteria before we will approve any request you make to renew your franchise. |
| Transfer Fee | $10,000 | At the time of your assignment or transfer proposal. | You and your proposed transferee must meet certain other conditions before we can evaluate and/or approve any transfer proposal you make in connection with (a) your franchise or Franchise Agreement, and/or (b) any ownership interest in Franchisee (if an entity). The Transfer Fee applies to all transfers regardless of whether you are transferring the entire Franchised Business or just a portion of it (i.e., one of your Designated Territories). If you are an individual and wish to assign the franchise and Franchise Agreement to an entity that is wholly owned by you and formed for purposes of owning the Franchised Business, then we may only charge you the legal fees and other costs we incur in connection with evaluating and memorializing our consent to the assignment (and any conditions associated with the transfer). The Transfe |
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the $10,000 transfer fee is due at the time of your assignment or transfer proposal. This fee is required when a franchisee proposes to transfer their franchise or any ownership interest in the franchise, whether it's the entire business or just a portion of it, such as one of the Designated Territories.
Spray Net stipulates that both the franchisee and the proposed transferee must meet certain conditions before the company will evaluate or approve any transfer proposal. However, there is an exception: if an individual franchisee wishes to assign the franchise to an entity wholly owned by them and formed for the purpose of owning the franchised business, Spray Net may only charge the legal fees and other costs incurred in connection with evaluating and documenting consent to the assignment.
The FDD also notes that the transfer fee is subject to state law, implying that the fee structure or conditions may vary depending on the specific jurisdiction. Prospective Spray Net franchisees should be aware of these conditions and any potential legal variations when considering a transfer.